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Frontier News

amF16

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Frontier Airlines Files Monthly Operating Report for September 2008





Last update: 9:42 p.m. EDT Oct. 28, 2008


DENVER, Oct 28, 2008 /PRNewswire-FirstCall via COMTEX/ -- Frontier Airlines Holdings, Inc. (FRNTQ:frontier airlines holdings i com
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5:20pm 10/29/2008

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<img class="pixelTracking" border="0" height="1" width="1">FRNTQ 0.32, +0.01, +3.2%) today filed its Monthly Operating Report for September 2008. Frontier reported an operating loss of $10.4 million and a consolidated net loss of $20.8 million for the month of September 2008. For the second fiscal quarter ended September 30, 2008, the Company reported a $5.8 million operating loss and a $29.7 million consolidated net loss.
Frontier's September results included $7.0 million in reorganization costs, $1.4 million in tax expense related to the amount expected to be due on the realized gain on aircraft sales and $2.1 million in unrealized losses on fuel hedges. Included in the $7.0 million in reorganization costs were the following:
-- $13.5 million for a non-cash equipment write-off;
-- $1.8 million related to the write-off of debt issuance cost on
convertible bonds; and
-- $1.6 million in professional fees related to the reorganization



These items were offset by recorded gains of $9.9 million from two aircraft sales during the month and a gain on a contract termination and other net gains related to settlements.
Contributing to Frontier's operating loss was a 54 percent increase in fuel costs per gallon (excluding fuel hedging activities) as compared to the same period last year as well as a 14 percent decrease in capacity year-over-year.
"Despite the net loss, we are pleased with the results of our restructuring plan and continue to have success managing our liquidity," said Frontier CEO Sean Menke. "Our cash and short-term investments remained relatively stable in September, which is a direct result of our diligent cash management efforts, our continued successes with cost management and the realized proceeds from our aircraft sales."
Companies in Chapter 11 Bankruptcy protection are required to file monthly operating reports to the U.S. Trustee in addition to quarterly reports filed with the U.S. Securities and Exchange Commission.
A copy of the Monthly Operating Report is available at: FrontierAirlines.com/frontier/who-we-are/investor-relations/annual-reports- sec-filings.do
 

GuppyWN

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Come on dammit. You've got to do better than that. Hope the holiday's help. Better than that I hope somebody else ponies up before Q1.

Shrinking to profitability aint workin' these days.

Gup
 

Colonel Savage

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NoTime
B!tch SLAP!
 

Cornelius

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13.5 million write off for for non-cash equipment put F9 in the red. I have no clue to what that writeoff is.
 

begsby

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CNN Reported today that frontier will start reducing 401k match. Ouch!!
 

dojetdriver

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Losing hedges to profitability aint workin so good these days either


I could be wrong. But wasn't there something that if they go CH.11 the fuel hedge gets lost?

The hedge was sold for the money, THEN bk was filed. They would have lost either way, so they sold them first to generate cash.

Like I said, I could be wrong so hopefully somebody can straighten me out.
 

PulluP

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Southwest loses $2 Billion in fuel hedge value

http://www.dallasnews.com/sharedcontent/dws/bus/stories/102108dnbusswfuel.37dca64.html


Southwest Airlines says fuel-hedging contracts lost $2 billion in value in October


[SIZE=-1]08:41 AM CDT on Tuesday, October 21, 2008[/SIZE]


[SIZE=-1]By TERRY MAXON tmaxon@dallasnews.com [/SIZE]
Southwest Airlines Co. said Monday the value of its fuel-hedging contracts dropped by nearly $2 billion during the first 15 days of October as their worth followed the sharp decline in jet fuel prices.
In a quarterly financial report to the Securities and Exchange Commission, Southwest said the "fair value" of those investments fell from $2.5 billion on Sept. 30 to $550 million as of Oct. 15.
It's too early to predict how the drop in the contracts' value might affect Southwest's fourth-quarter earnings, but chairman and chief executive Gary Kelly underlined last week that falling energy prices help Southwest a lot more than they hurt the carrier.
"Actually, falling prices are a great opportunity for us and certainly not a problem," he told analysts on a conference call to discuss Southwest's third-quarter earnings.
Southwest has benefited for years from fuel hedging that shielded it somewhat from rising jet fuel prices, while most competitors lacked hedges, had hedges at much higher prices or hadn't invested enough to make much difference on their costs.
Last Thursday, Southwest reported a net loss of $120 million in the third quarter, its first quarterly loss since first quarter 1991 and the biggest quarterly loss in its history.
The airline made money on an operating basis, but it was pushed into the red by $238 million in accounting charges that reflected the decreased value of the fuel derivative contracts and other hedging impacts.
In its SEC filing, Southwest said the value of its "fuel derivative contracts" dropped from $5.1 billion on June 30 to $2.5 billion on Sept. 30.
The numbers included a $448 million hedging gain that the airline received in cash settlements.
Several other carriers have reported accounting losses from hedges recently as energy prices dropped sharply. Crude oil has fallen from a high of over $147 a barrel in July to Monday's close around $75.
UAL Corp., parent of United Airlines Inc., reported a third quarter loss of $779 million today, including $519 million in non-cash losses from the decline in value of its fuel hedges in the quarter.
“At the end of the quarter, the fair value of the outstanding fuel hedge contracts was negative $230 million,” UAL told investors in a press release.
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General Lee

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http://www.dallasnews.com/sharedcontent/dws/bus/stories/102108dnbusswfuel.37dca64.html


Southwest Airlines says fuel-hedging contracts lost $2 billion in value in October


[SIZE=-1]08:41 AM CDT on Tuesday, October 21, 2008[/SIZE]


[SIZE=-1]By TERRY MAXON tmaxon@dallasnews.com [/SIZE]
Southwest Airlines Co. said Monday the value of its fuel-hedging contracts dropped by nearly $2 billion during the first 15 days of October as their worth followed the sharp decline in jet fuel prices.
In a quarterly financial report to the Securities and Exchange Commission, Southwest said the "fair value" of those investments fell from $2.5 billion on Sept. 30 to $550 million as of Oct. 15.
It's too early to predict how the drop in the contracts' value might affect Southwest's fourth-quarter earnings, but chairman and chief executive Gary Kelly underlined last week that falling energy prices help Southwest a lot more than they hurt the carrier.
"Actually, falling prices are a great opportunity for us and certainly not a problem," he told analysts on a conference call to discuss Southwest's third-quarter earnings.
Southwest has benefited for years from fuel hedging that shielded it somewhat from rising jet fuel prices, while most competitors lacked hedges, had hedges at much higher prices or hadn't invested enough to make much difference on their costs.
Last Thursday, Southwest reported a net loss of $120 million in the third quarter, its first quarterly loss since first quarter 1991 and the biggest quarterly loss in its history.
The airline made money on an operating basis, but it was pushed into the red by $238 million in accounting charges that reflected the decreased value of the fuel derivative contracts and other hedging impacts.
In its SEC filing, Southwest said the value of its "fuel derivative contracts" dropped from $5.1 billion on June 30 to $2.5 billion on Sept. 30.
The numbers included a $448 million hedging gain that the airline received in cash settlements.
Several other carriers have reported accounting losses from hedges recently as energy prices dropped sharply. Crude oil has fallen from a high of over $147 a barrel in July to Monday's close around $75.
UAL Corp., parent of United Airlines Inc., reported a third quarter loss of $779 million today, including $519 million in non-cash losses from the decline in value of its fuel hedges in the quarter.
“At the end of the quarter, the fair value of the outstanding fuel hedge contracts was negative $230 million,” UAL told investors in a press release.
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Any comments on the above Momally81? Has Starcheck or Bankair lost any money lately?


Bye Bye---General Lee
 

momalley81

Done spillt mah beer...
Joined
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Posts
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http://www.dallasnews.com/sharedcontent/dws/bus/stories/102108dnbusswfuel.37dca64.html


Southwest Airlines says fuel-hedging contracts lost $2 billion in value in October
[SIZE=-1]08:41 AM CDT on Tuesday, October 21, 2008[/SIZE]
[SIZE=-1]By TERRY MAXON tmaxon@dallasnews.com [/SIZE]
Southwest Airlines Co. said Monday the value of its fuel-hedging contracts dropped by nearly $2 billion during the first 15 days of October as their worth followed the sharp decline in jet fuel prices.
In a quarterly financial report to the Securities and Exchange Commission, Southwest said the "fair value" of those investments fell from $2.5 billion on Sept. 30 to $550 million as of Oct. 15.
It's too early to predict how the drop in the contracts' value might affect Southwest's fourth-quarter earnings, but chairman and chief executive Gary Kelly underlined last week that falling energy prices help Southwest a lot more than they hurt the carrier.
"Actually, falling prices are a great opportunity for us and certainly not a problem," he told analysts on a conference call to discuss Southwest's third-quarter earnings.
Southwest has benefited for years from fuel hedging that shielded it somewhat from rising jet fuel prices, while most competitors lacked hedges, had hedges at much higher prices or hadn't invested enough to make much difference on their costs.
Last Thursday, Southwest reported a net loss of $120 million in the third quarter, its first quarterly loss since first quarter 1991 and the biggest quarterly loss in its history.
The airline made money on an operating basis, but it was pushed into the red by $238 million in accounting charges that reflected the decreased value of the fuel derivative contracts and other hedging impacts.
In its SEC filing, Southwest said the value of its "fuel derivative contracts" dropped from $5.1 billion on June 30 to $2.5 billion on Sept. 30.
The numbers included a $448 million hedging gain that the airline received in cash settlements.
Several other carriers have reported accounting losses from hedges recently as energy prices dropped sharply. Crude oil has fallen from a high of over $147 a barrel in July to Monday's close around $75.
UAL Corp., parent of United Airlines Inc., reported a third quarter loss of $779 million today, including $519 million in non-cash losses from the decline in value of its fuel hedges in the quarter.
“At the end of the quarter, the fair value of the outstanding fuel hedge contracts was negative $230 million,” UAL told investors in a press release.
function autoFeed(theFeed){ var script = document.createElement('link'); script.type = "application/rss+xml"; script.rel = "alternate" script.title = "BUSINESS " script.href = "http://www.dallasnews.com/" + theFeed; document.getElementsByTagName('head')[0].appendChild(script); } var rssFile = "rss/" var rssLink = ""; var qs = '/newskiosk/rss/dallasnewsbusiness.xml' if (qs.length > 1) { rssFile = qs.substring(1,qs.length); if (rssFile.substring(0,1) == "/") { rssFile = rssFile.substring(1,rssFile.length); } autoFeed(rssFile); } rssLink = "<a href=""\"http://www.dallasnews.com/" + rssFile + "\" onClick=\"window.open ('http://www.dallasnews.com/" + rssFile + "','','toolbar=yes, width=500, height=600, left=10,top=10, screenX=500, screenY=200, status=yes, menubar=yes, location=yes, scrollbars=yes, resizable=yes');return false\">"; yahooLink = "<a href=""\"http://add.my.yahoo.com/rss?url=http://www.dallasnews.com/" + rssFile + "\" onClick=\"window.open ('http://add.my.yahoo.com/rss?url=http://www.dallasnews.com/" + rssFile + "','','toolbar=yes, width=500, height=600, left=10,top=10, screenX=500, screenY=200, status=yes, menubar=yes, location=yes, scrollbars=yes, resizable=yes');return false\">" div#article_tools_bottom a{ font-size:9px;}

Again, SWA has LOST NOTHING on their fuel hedges.

It is quite simple. Really it is.

When oil was at $147 a barrel the SWA hedges were worth a nice chunk of change since 75% of SWA fuel was hedged at $51 a barrel.

Now, with oil hovering around $65 a barrel, that value is of course diminished. But again SWA has lost nothing, nada, zip, zilch.

So, let me state yet again that SWA has lost nothing on their fuel hedges.
 

General Lee

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I fly for neither company.

Fat, drunk, and stupid is no way to go through life son.

See above.

So you fly for Amflight. That is great. Fantastic. And, hopefully you yourself aren't fat or drunk while flying that Learjet, but stupid, well, that is questionable....


Bye Bye--General Lee
 

momalley81

Done spillt mah beer...
Joined
Sep 24, 2002
Posts
256
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So you fly for Amflight. That is great. Fantastic. And, hopefully you yourself aren't fat or drunk while flying that Learjet, but stupid, well, that is questionable....


Bye Bye--General Lee

Nope, not them either. Who I fly for is irrelevant.

What is interesting is your complete lack of knowledge or insight into financial matters yet your continued blabbering about things which seem to be too complex for you to grasp.

You state you come here to debate yet in your world "debate" is nothing more than bashing others and stating how wonderful Delta is.

Either attack my statements or quit wasting bandwidth on things you have no knowledge of.
 

Secret Squirrel

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Telling the General to quit wasting your time and bandwidth is like telling the sun not rise in the morning.
 

Correcting

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5 to 7
Southwest has lost nothing on the hedges, just like they gained nothing when the hedges were up.

It's called "mark-to-market". It's all an accounting rule.
Operational profit/loss is the real key. If fuel prices recover and Southwest still owns these hedges at that time, then they will record a huge "mark-to-market" gain on the hedges, which will also be meaningless unless they actually sell the hedges and take the money.

This really comes into play if a company is struggling and has to sell (exit) the hedges at a loss just to raise cash, or record the huge "mark-to-market" writedowns, which then causes the creditors to seek more collateral from company. It's partly what brought down some of the big banks with their CDO writedowns and subsequent collateral calls from creditors.
 

General Lee

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Posts
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Nope, not them either. Who I fly for is irrelevant.

What is interesting is your complete lack of knowledge or insight into financial matters yet your continued blabbering about things which seem to be too complex for you to grasp.

You state you come here to debate yet in your world "debate" is nothing more than bashing others and stating how wonderful Delta is.

Either attack my statements or quit wasting bandwidth on things you have no knowledge of.

Honestly, you are a waste of my time. You are consistantly WRONG about Southwest, and you don't even fly for them. Why am I responding to you again? Bye now.


Bye Bye--General Lee
 
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